China pushes to ‘improve’ iron ore price mechanisms

European Bi, In price rallies stall on profit taking

European Bi, In price rallies stall on profit taking

London, 4 July (Argus) — European price rises for bismuth and indium metal have slowed as sellers accept lower prices to take advantage of the markets' sharp increases in the second quarter. Speculation and tighter feedstock availability in China prompted prices for bismuth and indium metal to rise sharply in the second quarter, and European sellers raised offers to keep up with rising replacement costs. But a bout of profit taking from sellers has led prices for both metals to dip slightly over the past two weeks. European bismuth prices rose by 77pc in April-June but dipped lower at the start of July as traders took some profit from the recent price rally by offering long-held low-cost material at a discount to higher-cost replacement material from China. Argus last assessed prices at $6-7.25/lb duty unpaid Rotterdam, down from $6.50-7.50/lb at the end of June as infrequent bismuth traders dipped into the market offering 1-2t lots as low as $6/lb, while sellers buying replacement material from China offered upwards of $7/lb. Likewise, indium prices peaked at a nine-year high of $375-410/kg duty unpaid in June but have since settled slightly lower at $375-400/kg. Prices slid lower after a dip in the domestic Chinese market, which prompted sellers in Europe to reduce their offers slightly and take any profits gained from a 35pc price rise in the second quarter. Prices for both metals rose quickly during the second quarter owing to higher replacement costs from China, despite sluggish demand from European consumers. Chinese export prices for bismuth rose by 63pc from April to June and were last assessed flat at $6.13-6.25/lb fob. Domestic Chinese bismuth prices have risen as a result of environmental checks restricting the supply of bismuth concentrates from lead and zinc refineries, but the rise was also exacerbated by trading firms and investors taking large positions in anticipation of further price rises. Environmental checks also restricted supplies of indium feedstocks from China's Hunan, Guangdong, and Guangxi provinces, but the price rises on indium were largely driven by activity on the Zhonglianjin trading platform. Chinese export prices peaked at $370-390/kg fob mid-May but trended down to $360-375/kg through June once activity on the Zhonglianjin platform slowed. Speculation feeds further minor metal price jumps These rapid price rises on bismuth and indium prompted speculation that other minor metals could follow suit, with selenium, tellurium and germanium prices already trending higher. Selenium prices in Europe were assessed at $10.50-13/lb duty unpaid Rotterdam today, up from $10.20-12.50/lb at the end of June. Selenium prices rose by about 7pc during the second quarter, driven by higher replacement costs from China and steady demand from consumers and traders. Similarly, tellurium prices rose by 13pc in June, and were last assessed at $90-99/kg duty unpaid Rotterdam, up from the 2 July assessment of $88-96/kg. Supply in European warehouses is tight and rising prices in China have prompted sellers to raise their offers. Finally, germanium metal prices rose to a nine-year high of $1,800-2,000/kg cif main airport on 2 July, up from $1,600-1,900/kg at the start of June, following a rise in export prices from China. Germanium prices have averaged around $1,627/kg through the first half of this year compared with the 10-year average of $1,344/kg as export controls have restricted the supply of material outside China. Spot demand for most minor metals in Europe is slow and expected to remain so over the summer. But market participants are watching China closely for signs of which minor metals could be the next to spike, as Europe is reliant on Chinese exports for many minor metals. By Sian Morris Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.